A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
G
Gamma is the measure of the rate of change in an option's Delta for a every 1 dollar change in the price of the underlying security. Often referred to as the Delta of the Delta.
A type of limit order which remains in effect until the order is filled or cancelled. If not filled it does not automatically cancel.
Commonly referred to as Options Greeks. They are used to measure the different factors which affect an option contract's value. The Greeks used are Delta, Gamma, Theta, Vega and Rho.
H
A position entered for the specific reason of protecting an existing position held by the trader. For example: Trader holding shares of stock can buy a Put option to hedge against the stock price dropping - think insurance policy protection against loss of value.
A measurement of actual change in the stock rice over a given period of time. See Implied Volatility or Volatility.
The person who is holding the right to exercise an option. Trader can be the holder of a Call or Put option.
An option strategy that involves buying an option further out in time and then selling an equal number of contracts expiring at a time prior to the purchased options. For example: Buy 1 MIKI Feb 50 call (longer time until expiration) and Sell 1 MIKI Jan 55 call (shorter time until expiration). See Calendar spread, Diagonal Spread.
I
Implied volatility is the estimated volatility of a security's price. It increases when the market is bearish and decreases when the market is bullish. See Historical Volatility or Volatility.
When an option has intrinsic (actual) value. For example: A Call option is ITM when the stock price is above the strike price. A Put option is ITM when the stock price is below the strike price.
The NASDAQ, Dow Jones Industrial, S&P 500, etc.
An option purchased or sold against the index as the underlying interest.
This strategy involves four strike prices with both limited risk and limited profit potential. For example: Buy 1 MIKI 40 Call and 1 MIKI 40 Put, and sell 1 MIKI 45 Call and 1 MIKI 35 Put.
